Oil and gas stocks are under scrutiny in Monday’s trading as Brent crude oil prices hover around $60 per barrel, while US WTI crude oil prices have fallen below this mark. Indian companies involved in refining crude oil and producing petroleum products are expected to be impacted by these price movements.
The decline in crude oil prices follows concerns that US tariffs on trade partners, initiated by President Donald Trump, could harm oil demand and extend over a longer period. The global trade tensions have raised the risk of economic slowdowns, with fears of a potential recession. The International Monetary Fund (IMF) has highlighted that the tariffs pose a significant threat to global economic growth. The IMF has urged the United States and its trade partners to address trade tensions and reduce uncertainty.
Indian oil and gas companies, such as Reliance Industries, ONGC, Oil India, Indian Oil Corporation, and Bharat Petroleum, are expected to remain in focus. Shares of Reliance Industries saw a 3.5% drop in the previous session, while ONGC, Oil India, and Bharat Petroleum shares also experienced declines, with losses of over 7%, 6.8%, and 2.3%, respectively, on Friday.
The Nifty Oil & Gas index, which tracks a basket of oil and gas stocks, declined by 3.78% in the previous session and has fallen by nearly 4% over the past week. However, the index has gained 3.5% in the past month but is down by 5.5% over the last three months.
Additionally, the decision by OPEC+ to unexpectedly increase output to 411,000 barrels per day starting in May, up from the previously planned 135,000 barrels, has added to the downward pressure on prices. The combination of rising supply and concerns about weakening global demand—especially from trade disruptions—continues to influence crude oil prices. Analysts expect crude oil prices to remain volatile in today’s session.
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